Commodity Natural Gas Trading Guide

[00:00] Beginners, who are learning to trade in the stock market, But, don't trade with the data that I'm going to tell you now. Because, you'll be seeing volatility while you've been trading till now.

[00:14] There's a big gap down or big gap up in overnight. And, it's rising 100% in a few days and falling to 40-50% in a few days. You'll be seeing this much volatility in stocks and indexes.

[00:29] That is, natural gas. If you look from the US to India, most of the commodities that are traded in India,

[00:43] The main reason for being at the top is, traders want volatility. whether it's a breakout or a break down, It should mostly move with a volatile nature.

[00:58] So, they're trading crude oil and natural gas more. In this video, what are the options for trading natural gas? let's look at the options and futures,

[01:12] Because, it's not like the previous commodities, you have the main future, big future, right? Even, if you want to trade a smaller contract,

[01:27] it costs around 10,000 rupees to trade. You should understand if your strategy is perfect or not.

[01:39] just with one stock, you don't need to come to commodities. by taking one stock, and you can see how much profit and loss you can make.

[01:53] If you want to trade in the futures and options, we need to spend a lot of money, right? in the recent times, in the commodities,

[02:06] They launched it to base metals, crude oil, and natural gas. it costs around 10,000 rupees. or if your strategies work related to natural gas.

[02:23] I'll show you. So, you won't make mistakes in the future. look here, if you look in the trading view,

[02:38] So, here, I'm hiding this support and resistance. I'm zooming out. These are not stocks, they're commodities.

[02:53] it won't go from 200 to 300, 500, 1000, 10,000. Because, if the amount increases,

[03:05] So, automatically, the FEDs, RBIs, central banks, So, mostly, it's in a cycle. how much a sharp rally looks like a volatile,

[03:19] And, again, a sharp rally, sharp fall. If there's support, So, there's no end to it.

[03:34] Valuations. it'll keep getting more expensive. If the liquidity conditions,

[03:47] change , So, if you want to trade with natural gas, you're trading with a counter with a lot of volatility.

[04:00] Will the technical analysis work here? observe the lines on the downside. zoom out,

[04:13] So, multiple times resistance, Now, in recent times, resistance and even support zones are forming.

[04:27] are not based on the recent price action, we can see the respect related to these. a small margin of error or probability will decrease in the equity,

[04:43] try the price action once. we talked about gold, copper,

[04:57] I think I have a couple of metals left. So, just open the charts, Mark the important supports and resistances in the past,

[05:09] Don't draw it in the recent times, If I draw the support and resistance in the recent times, price action,

[05:23] We can apply the things we learn in the equity series, Okay, I understood about this. Because, the commodity is not everyone's interest.

[05:35] there is one such thing. and you know the global factors, there is one aspect.

[05:47] If you're a pro in that, and we can trade in all the asset classes as well. if you find it valuable at any point,

[06:02] and try to encourage our efforts. In equity, you're trading as a company related, You took a bullish position,

[06:14] the first thing you see is negative. you understand that the results are not good, You're going into loss.

[06:26] We take decisions, right? Similarly, here, Let's learn them step by step.

[06:39] Friends, I'll share with you the complete knowledge related to natural gas. Because, the nature of natural gas is, it moves very fast to global factors.

[06:51] if you can keep the global events in mind, but natural gas has some extra speciality. First, let's discuss the basic ones.

[07:06] If you've watched crude oil or gold, Because, the viewers of previous videos, If you watch the series of the video,

[07:20] you'll understand the whole thing. Dollar index. So, it's compared to the dollar index, DXY.

[07:32] when the dollar is getting stronger, You can take any metal, gold, silver, the dollar is trading in terms of negative.

[07:45] it's negative for natural gas. If the Fed goes up, The money is getting reduced by liquidity,

[07:58] Because of that, they're negative for natural gas. It's positive for metals,

[08:10] So, if there are any updates that say inflation is increasing rapidly, Inflation increases only when these prices are increasing.

[08:22] We buy more crude oil for petrol and diesel. Inflation in India will also automatically increase. Inflation in the economy will also increase.

[08:37] So, the Fed said that if inflation increases, we will increase the interest rates. Because, if inflation increases, the Fed will increase interest rates. So, by seeing inflation data, some will fall.

[08:53] If the economy is weak, even if the inflation is increasing Fed will not increase the interest rates. What is the tone of the Central Bank of the US? Will they remain calm if inflation increases?

[09:07] It will take some time. Those who trade in Commodities, Inflation, US Fed,

[09:20] Their commentary, their view, their tone, We talked about the meaning of these words in the beginning. And, this is special for particular natural gas.

[09:34] Winter has started. It is covered with snow. If we have a report that winter will come and it will be colder than expected,

[09:49] Because, if winter is more, For heat. Will use more natural gas for heat.

[10:02] Will they use natural gas for heat generation or power generation? Look at the energy generated. So, take some industries.

[10:18] Take cement sector, Do you know what is one of the major raw materials you take? It will have a negative impact on cement companies,

[10:32] Fertilizer companies, and even chemical companies. If the price of natural gas rises, So, the natural gas prices,

[10:45] And for most of the companies in Europe, So, natural gas is on the weather. Not because the temperature is high,

[10:58] And it will be colder. Like, the normal temperature is not high this time. If the weather reports and conditions are updated,

[11:12] There are pipelines supplying natural gas. One country is supplying natural gas, They will say that there is an issue in the pipeline.

[11:25] Means, someone will produce the natural gas supply. And send the excess to another country. If it is necessary,

[11:38] Then, even if there are geopolitical uncertainties, By showing certain reasons, When the US and Europe came to support the Ukrainians,

[11:53] They said that they are temporarily stopping the gas pipelines, we are stopping that are being leaked. But, these updates are coming to us,

[12:05] When Russia said that the Nord pipeline is cutting the stream, The prices of natural gas increased. And, they had to buy the natural gas at a higher price,

[12:21] Increased at a very high rate. They gradually stopped the pipeline. Because of these political tensions,

[12:33] That we are not supplying, Like, crude oil is also the same. Or if there are drone attacks,

[12:46] And the prices will increase. These are also important reasons. We see that it is mostly inventory data for crude oil.

[12:58] Will you get natural gas inventory? After that, it will update like this. You will see the next inventory data,

[13:10] Forecast means, Here, is there 54B, 86B, 79B? The natural gas we consume is called MMBTU.

[13:22] Metric Million British Thermal Unit. Here, B means, We don't need that.

[13:34] Forecast is 52. Let's say, 52 barrels. 52, this time, will be there.

[13:46] US will have inventory. If, actually, it comes to 53, Even outside, demand, companies,

[13:58] If there are 52 small barrels, What is the meaning? What is the meaning?

[14:10] They used less natural gas than expected. So, compared to the number here, If it falls, it is positive.

[14:22] Not with the previous one, but with the forecast. And, related to this, Search for Crude oil Day Trader Telugu.

[14:34] Around 26 minutes. I will explain multiple cases. Watch it once.

[14:46] If you understand all the factors, Why does it fall next? You have to understand all these global factors.

[14:58] Just come to MCX India website. Click on the energy and natural gas. You will get a PDF like this.

[15:10] After opening it, you will get the basic details of natural gas. What factors are the natural gas based on? We have discussed earlier,

[15:22] And production. If they have any issues, Mostly, natural gas and crude oil prices

[15:34] Industrial and residential demand in US. So, the global futures of natural gas. Where will they be traded?

[15:46] IC, Intercontinental Exchange. And, in India, Fertilizer industry, power industry,

[15:58] Like, IGL, MGL. But, what should we see if we want to trade it? If you want futures,

[16:10] You will get options for futures. Check it once, mostly liquidity will be there. You can't type natural gas mini.

[16:22] Then, we get mini contracts. So, to buy natural gas future, If you want to buy mini future,

[16:34] Let's see the difference. Even if we leave them till expiry, Because, we store gas there.

[16:46] Here, the change is 1 rupee. Even if 1 rupee changes, there will be a change. It will cost 10,000.

[16:58] Charges are 18 rupees to trade mini. Including all charges. All charges.

[17:10] 1-1 rupee equal to 1250. 52 rupees to sell. And the basic elements related to commodities.

[17:22] About Fed, interest rates rates, And most of the factors in the global market. So, I don't want to discuss it in detail.

[17:34] Ultimately, natural gas is a concept. If you understand volatility, If you think that you are a very disciplined trader,

[17:46] You can try this to test your strategies. And you get excited, But, you shouldn't touch this.

[17:58] Most of the base metals will change. They will change with recent events. If there is more volatility in the market,

[18:10] Crude oil was the most volatile. Due to the issues related to the Europe and Russia crisis, Natural gas and crude oil.

[18:22] In the commodity market. If you draw the previous Check if the support and resistance works.

[18:34] You can apply all the elements you learned in the equity market. If you know the fundamentals related to stocks, And if you trade, there will be a better edge.

[18:46] Inflation, interest rates, Factory output data, I talked about all these in the video.

[18:58] If you understand all these, Not only intraday, but also positionally, When we think that the demand is more than expected,

[19:10] When we see resistance breaking, Or, when the Fed takes this decision, When the support breaks,

[19:22] When we understand the positive and fundamental aspects, or the buy side, If we have a bullish view, we stop the sell side.

[19:34] We trade according to the levels. I hope you found this video interesting. Like and encourage the efforts we make.

[19:46] Till then, Take care. Jai Hind.